help! - Posted by Ed


#1

Posted by Bill Gatten on December 22, 1998 at 14:37:47:

I’d be happy to assist you, if you wish. Just e-mail me.

Best of luck,

Bill


#2

help! - Posted by Ed

Posted by Ed on December 19, 1998 at 17:36:00:

I have found a home that I would like to buy for $79,000.
It is a 4 br that needs a lot of work.
My wife and I want to buy and fix it up …live in it for a little bit and then sell it.
I have bad credit and need some advice on how to go about getting a loan for this (conventional loan thru the bank isnt gonna happen).
PLEASE help if you know of anyway I can creatively do this!!!
Thanks in advance…ED


#3

Re: help! (3 prty Land Trust What Else?) - Posted by Bill Gatten

Posted by Bill Gatten on December 21, 1998 at 20:23:05:

Another possibility:

Have the seller give you a year or two to come up with financing (i.e., “buy now and finance later”). You merely have the seller put the property in a land trust in his/her own name and sell you a beneficiary interest in the trust, rather than title ownership. Doing it this way protects the seller against any liens, suits judgements, family problems or BKS (or tax liens) that you could ever have. As well, it gives you the same protection against him, plus 100 percent of the benefitis of ownership while you’re waiting for your ship to come in.

Whatever percentage of beneficiary interest you would take now, as long as it’s at least 10%, entitles to 100% of the tax write-off and the equity build up and fufutre appreciation. The seller then agrees to forfeit the remainder of the beneficiary interest to you at the end, based upon your prompt payment record and performance(say, 2 or 3 years down the road). The arrangement makes him VERY comfortable and safe, and does the same for you.

e-mail for details, if I can help.

Bill Gatten


#4

Re: help! - Posted by Jim IL

Posted by Jim IL on December 21, 1998 at 24:59:00:

You need to find out more info, or if you have more, give it here. It is hard to give you any ideas, without more info. Just the sales price is not enough.
Are the sellers motivated? what is the home worth, now and after fixup?
Exisitng financing?
What do the sellers “need” out of the sale?
How much cash is needed?
How much cash do you have?
What will “fix up” cost?
What are the comps. in the area?
Are there other renters in area?
Will this home rent once fixed up? and if so, will it rent to make you money?
Lots of questions, and the ONLY way to get answers is to ask them.
"The dumbest question is the one Never asked!"
Once you have more info, post it here. These people know there stuff, so give them some info to work with, and they will almost walk you thru the deal.
They have helped me tremendously.
Merry Christmas all Õ¿Õ


#5

Re: help! - Posted by Russ Sims

Posted by Russ Sims on December 21, 1998 at 24:10:29:

Ed:Go to the “How To” articles section and read the article by JP Vaughan titled “How to create your own mortgage”. This seems like a logical place to look if the owner will not finance.


#6

Re: help! - Posted by dru

Posted by dru on December 19, 1998 at 18:05:03:

1-First of all, do you have an offer on the home to lock it up. Write an offer and figure out how to pay later.

2-If not, You need to determine motovation by asking them questions. Where are you moving, When do you have to be there, Is the home have a morgtage, if so how much is owing, will you consider a lease option, will you consider a short term land contract, will you take less for cash…dont be afraid to ask lots of questions or get creative.

4-Dont forget to make the offer contingent upon inspections. You never know.

5-if you buy the house cheap enough and if it will appraise high, you may be able to get a no dock loan. There are tons of lenders doing high risk lending now. I know of a few. Remember, it is easier to re-finance than to get a new mortgage. Go for the land contract or lease option.